With India’s medical inflation hitting an upward trend, it is only prudent that you think of increasing your health insurance coverage. While buying a separate health insurance policy might not be the solution for everyone, top-up plans can surely be the go-to option for many.Â
What is a Top-Up Plan?
Top-up plans are just like your additional talk-time on your mobile phone wherein you can simply increase the talk-time without having to pay a high rental. Similarly, top-up health plans are additional coverage provided after the exhaustion of the base plan at a much lesser cost. It enhances your current coverage and acts as an additional layer of financial back-up and protection to your existing plan.
How Does A Top-Up Plan Work?
A top-up plan comes in handy when you exhaust the sum insured in your policy.
Here’s an easy example to understand.
You have a family floater health insurance plan with ₹5 lakhs as the sum insured. Keeping in mind the growing requirement, you opt for an ₹10 lakh top-up plan. Your deductible is ₹5 lakhs. This means that when the hospital bill is over the deductible, the top-up can come into play.
Your hospital bill is ₹8 lakhs. Here, ₹5 lakhs will be paid from your base plan. As the amount above the base plan is more than the deductible (₹5 lakhs), the remaining INR 3 lakhs will be payable from the top-up.
What is a Super Top-Up Plan?
Another kind of top-up plan is a super top-up plan. While both offer extra coverage, they are different in nature. With a top-up plan, you can file a claim only when a single claim amount is more than the threshold deductible limit. However, a super top-up plan provides coverage when the aggregate claims in the entire policy year crosses the threshold limit.
 How Does a Super Top-Up Plan Work?
In the previous example, if the aggregate hospital bills for the entire year are ₹2 lakhs, ₹3 lakhs and ₹3 lakhs, then the first 2 claims would be paid by the base plan (INR 5 lakhs) and the remaining would be paid only by super top-up plan, not top-up plan. This is because the single claim amount is not more than the threshold deductible limit (₹5 lakhs) but the aggregate claim amount is!
Simply put, a super top-up plan works on the total medical expenses which are incurred during the year, not on the basis of individual claims. In case of unforeseen emergencies or unplanned expenses, it helps to have a safety net.Â
Super top-up plans are usually slightly more expensive than top-up plans but it works better as each claim amount might not be high but the overall bill could be. You can opt for a plan with a deductible equal to your base plan so that your out-of-pocket expenses are minimal. Also, check the waiting period, exclusions and other aspects of the top-up plans. Â
To get the best benefits from a super top-plan, you can book a demo with Zopper. We work with some iconic institutions and their alumni to offer one-of-a-kind solutions that cover their parents and even their in-laws through our exclusively curated Super Top-up plan. From planning to preparation and communication of key benefits, we cover everything for you.
